- Ethereum price corrected a few points as forecasted in yesterday’s post to present a nice buying opportunity.
- The price found support near the 100 hourly simple and traded back higher to complete the buy trade idea.
- The price is again moving down and finding bids near a bullish trend line formed on the hourly chart (data feed via Kraken), which holds the key in the near term.
Ethereum price dipped, and traded higher once again. However, it looks like the $12.00 area is proving to be a major resistance area.
Ethereum Price – Careful Buying Moving Ahead
Ethereum price continued to remain in the bullish zone, and traded higher a couple of times. There was a minor correction intraday to present a buying opportunity. The price found support near the 100 simple moving average (hourly chart, data feed via Kraken) and traded higher once again to complete the buy idea proposed yesterday.
However, I think the bulls need to be a bit careful in the near term, as it looks like there is a monster resistance forming near $12.00. There were more than a couple of failures noted around the stated level, which means there is a chance that the price may correct in a larger wave in the near term. On the downside, an initial support is around the 38.2% Fib retracement level of the last wave up from the $8.50 low to $12.02 high.
The most critical support area is a bullish trend line formed on the hourly chart (data feed via Kraken), which must hold is the bulls have to take the price higher once again. A break below it may negate the current bullish view.
Hourly MACD – The MACD is in the bearish slope, which is a negative sign at the moment.
Hourly RSI – The RSI is also below the 50 level, calling for a downside move.
Intraday Support Level – $10.65
Intraday Resistance Level – $12.00
Charts courtesy of Kraken via Trading View